UGANDA MARTYRS UNIVERSITY

FIANL EXAMINATION FOR THE DEGREE OF BSIT, BSCS3

COURSE NAME: ENTEPRENUERSHIP AND INNOVATION

YEAR OF STUDY: III

SEMESTER: TWO ACADEMIC YEAR: 2023//2024

NAME STUD REGISTRATION NUMBER

Wabuteya Kizito 2021-B071-11885

Nakayiwa Sarah 2021_B071-13112
Musasizi Isaac. M 2021-B071-12107
Biyiza Brian Peter 2021-B071-11644
Galla Augustine Lokudada 2021-B291-11098
Question 1: Describe Netflix’s strategy process over time. What approach to the strategy
process does Netflix follow? What works well with this approach? What are some challenges
with this process, especially as Netflix continues to grow fast?

Netflix's strategy process has evolved significantly over time as seen below:

i. Initially, Netflix focused on disrupting the traditional video rental industry by offering a
unique business model of renting DVDs by mail. This innovative approach allowed
Netflix to build a loyal subscriber base and differentiate itself from competitors like
Blockbuster.
ii. As broadband internet became more widespread, Netflix shifted its strategy to focus on
streaming video content. This strategic pivot towards streaming content distribution
was well-timed and positioned Netflix for long-term growth.
iii. To stay ahead of the competition, Netflix heavily invested in original and licensed
content. This allowed Netflix to differentiate itself by offering exclusive content that
could not be found on traditional television or other streaming services.
iv. Netflix has also pursued an aggressive global expansion strategy, launching its service in
over 190 countries. This global reach has broadened Netflix's potential subscriber base,
but also introduces new challenges around localizing content and navigating different
regulatory environments.
 In general, Netflix has demonstrated a flexible and adaptive approach to strategy,
quickly pivoting its business model in response to technological and competitive
changes in the industry.
 This dynamic strategy process has allowed Netflix to stay ahead of the curve and
maintain its position as a market leader.
 However, the rapid growth and content investment required to fuel this strategy have
also created financial challenges that Netflix must continue to manage effectively.

Question 2: How was Netflix able to disrupt the U.S. home entertainment industry? Describe
Netflix’s innovation strategy over time. Also, how did Netflix’s business change over time?
How did its business model innovation support its technology strategy?

Netflix's innovation strategy and business model evolution played a crucial role in disrupting the
U.S. home entertainment industry through:

a) Netflix's initial innovation which was to offer a subscription-based DVD rental service by
mail. This approach was novel because it allowed customers to browse and rent DVDs
from the comfort of their own homes without the need to visit physical video stores.
 b) Personalized recommendation engine, which used a proprietary algorithm to suggest
DVDs based on users' viewing histories, further differentiated the service from
traditional video stores.
c) Netflix shifted its focus from DVD rentals to streaming content directly to users' devices
as broadband internet became more widespread. This strategic pivot allowed Netflix to
reduce costs associated with DVD production and shipping, while also providing users
with a more convenient and flexible viewing experience.
d) Staying ahead of competitors by heavily investing in original and licensed content. This
strategy allowed Netflix to differentiate itself by offering exclusive content that could
not be found on traditional television or other streaming services.
e) Continued expansion of its service globally, launching in over 190 countries and offering
content in multiple languages. This global reach has broadened Netflix's potential
subscriber base, but also introduces new challenges around localizing content and
navigating different regulatory environments.
 Through implementing these strategies, Netflix was able to disrupt the U.S. home
entertainment industry by offering a unique and engaging user experience that catered
to diverse consumer preferences.
 This innovation strategy supported Netflix's technology strategy by leveraging data
analytics to inform content development and marketing efforts, ensuring a seamless
and personalized experience for users.

Question 3: What are Netflix’s core competencies? How can they help Netflix to sustain its
competitive advantage? How must its core competencies be honed and modified?

Netflix's core competencies are:

i. Proprietary algorithm which provides users with tailored content suggestions based on
their viewing history and preferences. This competency allows Netflix to offer a unique
and engaging user experience, setting it apart from competitors.
ii. Significant investment in original and licensed content, including popular shows like
"House of Cards" and "Stranger Things," has helped the company build a robust content
library that appeals to a diverse audience.
iii. Ability to expand its service globally and adapt content to local markets has broadened
its potential subscriber base, but also introduces new challenges around localizing
content and navigating different regulatory environments.
iv. Robust infrastructure, including high-speed data centers and content delivery networks,
also enables the company to deliver high-quality content to users worldwide.
 v. Extensive use of data analytics informs content development, marketing, and business
strategy. This competency allows Netflix to make informed decisions and optimize its
operations for long-term success.

These core competencies help Netflix sustain its competitive advantage through:

i. Netflix's personalized recommendation engine and exclusive content offerings

which set it apart from competitors, making it a go-to choice for users seeking
unique content experiences.
ii. Its ability to offer a curated selection of content and provide a seamless
streaming experience which fosters loyalty among users, who are more likely to
continue subscribing to the service.
iii. Also Netflix's global expansion and localization capabilities which enable the
company to tap into new markets and subscriber bases, further solidifying its
competitive position.

To sustain its competitive advantage, Netflix must continue to hone and modify its core
competencies by:

i. Continuing to refine its recommendation engine to better understand user

preferences and provide more accurate suggestions.
ii. Maintaining its focus on investing in high-quality, exclusive content that appeals
to diverse audiences and stays ahead of competitors.
iii. Staying attuned to shifting user preferences and viewing habits, incorporating
new technologies and features to ensure a seamless and engaging user
experience.
iv. Continuing to work closely with ISPs to ensure reliable and high-quality
streaming experiences, addressing any infrastructure challenges that may arise.
v. Exploring emerging technologies like artificial intelligence, virtual reality, and
cloud computing to stay ahead of the curve and maintain its competitive edge.

Question 4: Netflix growth in African market seems to show a positive growth. How could
Netflix increase demand for its services in Uganda? What other services could Netflix offer to
drive future growth?

Netflix's growth in the African market, particularly in Uganda, can be attributed to several
factors. To increase demand for its services in Uganda, Netflix could:
 a. Through offering more local content, including Ugandan films and TV shows,
would help Netflix cater to the local audience's preferences and increase
engagement.
b. By enhancing the user experience through optimizing the streaming service for
slower internet speeds, which are common in Uganda, would help reduce
buffering and improve overall performance.
c. Effective marketing and promotion strategies, such as targeted advertising and
social media campaigns, could also help raise awareness about Netflix and its
services among Ugandan consumers.
d. Collaborating with local businesses, such as mobile operators or internet service
providers, could help Netflix expand its reach and offer bundled services that
appeal to Ugandan consumers.
e. Offering offline viewing capabilities, which Netflix already provides, would be
particularly useful in Uganda where internet connectivity can be unreliable.

To drive future growth, Netflix could consider offering additional services such as:

a. Offering mobile-only plans with lower pricing and data caps could help Netflix
attract more users in Uganda, where mobile internet penetration is high.
b. Expanding into gaming content, such as mobile games or cloud gaming, could
provide a new revenue stream and attract users who are interested in gaming
but not necessarily in watching movies and TV shows.
c. Offering Virtual Reality (VR) and Augmented Reality (AR) content could provide a
unique and immersive experience for users, setting Netflix apart from
competitors and driving growth in the region.
d. Providing support for local languages, such as Luganda, could help Netflix cater
to the diverse linguistic needs of Ugandan users and increase engagement.

Through implementing these strategies, Netflix can increase demand for its services in Uganda
and drive future growth in the region.